Today’s Reading

Internet access has been a bit restricted as of late so I haven’t had the chance to update Today’s Reading for a while. Unreliable connections and a need to dodge the internet po-po keeps my blog posts less frequent than I would like.

President Bashar al-Assad’s brutal crackdown on demonstrators bodes about as well for Syria’s economy as it does for democracy. The bloody affair has spooked investors and derailed at least three major Gulf investment projects, according to Al Arabiya. It has also virtually extinguished the tourism industry, previously one of Syria’s fastest-growing sectors.

The IMF lowered its growth projections for Syria in April to 3 percent, down from 3.2 percent in 2010, but the Institute of International Finance’s prediction that the Syrian economy will shrink by 3 percent this year is starting to look more likely. U.S. and European sanctions — some directed at Assad and his top aides — could make things worse for the cash-strapped country. Syria, which has no credit rating, cannot borrow on the international lending market and has traditionally relied on Gulf monarchies such as Kuwait for cash infusions. But according to a recent report, Iran, Syria’s ally to the east, may help keep Damascus afloat with a $5.8 billion loan.

Of course the biggest news today is the Syrian parliament’s adoption of a new draft law to allow parties other than the Baath party to be formed. Sounds like a big deal but government opponents aren’t celebrating in the streets just yet. Opposition groups have either dismissed them as either symbolic or too little too late.